Korn Ferry's Q2 2025 Earnings: A Closer Look at EPS Miss

Korn Ferry (NYSE: KFY), a leading global organizational consulting firm, recently reported its second quarter fiscal 2025 earnings, with earnings per share (EPS) missing analyst expectations. The company's fee revenue decreased by 4% year-over-year to $674.4 million, driven by lower fee revenues in Professional Search & Interim and Consulting segments due to declining demand amidst the current economic environment. Despite the EPS miss, Korn Ferry's overall financial performance showed improvement, with net income attributable to Korn Ferry increasing to $60.8 million compared to a net loss of $1.7 million in the year-ago quarter.



Analysts had expected EPS of $1.21, but Korn Ferry reported EPS of $1.14, a 4.9% miss. This discrepancy can be attributed to higher expenses, as revenue growth outpaced earnings growth. Revenue was in line with analyst estimates, growing 3.1% year-over-year to $682.0 million. Korn Ferry's operating margin and adjusted EBITDA margin improved significantly, rising to 13.0% and 17.4%, respectively.



Korn Ferry's long-term growth prospects remain intact, with revenue forecast to grow at a compound annual growth rate (CAGR) of 5.1% over the next three years. This growth outlook is driven by the company's strategic initiatives, such as the launch of the Korn Ferry Talent Suite and the acquisition of Trilogy International. The acquisition of Trilogy expands Korn Ferry's interim professional offerings to the substantial EMEA addressable market opportunity, indicating a commitment to investing for future growth.

In conclusion, Korn Ferry's EPS miss in the second quarter of 2025 can be attributed to higher expenses, which outpaced revenue growth. Despite this miss, the company's overall financial performance showed improvement, with net income and margins increasing significantly. Korn Ferry's long-term growth prospects remain promising, driven by strategic initiatives and expansion into new markets. Investors should closely monitor Korn Ferry's earnings and financial performance to assess the company's ability to maintain and build on its recent momentum.